2002 Honda Civic
2006-11-30 14:52:40 · 7 answers · asked by jballin2003 1 in Business & Finance ➔ Credit
The dealer or bank will promise you that it won't go against your credit if you voluntarily turn it in, but he will be lying to you. It affects your credit just the same as an involuntary repossession.
2006-11-30 14:55:58 · answer #1 · answered by Fish <>< 7 · 0⤊ 0⤋
Repossessing is not the word. That means when they come and take it away from you.
What happens is....you take a loan for example 20k. Lets say you have already paid 5k so you owe the bank 15k.
You take your car back...the dealer will take the car and auction it off or sell it for the blue book price. Lets say they auctioned it off for 10k or the blue book price was for 10k. They pay the bank that financed you. You still owe the bank the other 5k.
You will either pay it or go to collections.
2006-11-30 23:00:14 · answer #2 · answered by smile4cobra 3 · 1⤊ 0⤋
I have been through this. When you take the car back, the company will try to resell it, if they do not get what you owe on the car then you have to pay the difference. It is more than likely they will say they got a very low amount for the car and you will have to pay the balance in full anyway.
2006-11-30 22:56:57 · answer #3 · answered by mistyblue352001 2 · 0⤊ 0⤋
The default will be recorded on your credit record and will remain for 7 years. Although it is not as severe as a bankruptcy, it will be a red flag for any credit applications for loans, especially cars.
Expect higher interest rates, difficult questions during credit checks for jobs, which are becoming more common, and a lot of junk mail from debt consolidators.
2006-11-30 22:56:29 · answer #4 · answered by linkedin 1 · 0⤊ 0⤋
Even though you voluntarily reposessed it, it still is a reposession. It will show on your credit for the next 7 years.
2006-11-30 22:55:09 · answer #5 · answered by Jessica W 2 · 0⤊ 0⤋
goes against you.... bank sells the car for what they can get and then they go after you for the remaining balance... good luck... sell it your self or find someone to take over payments..
2006-11-30 22:55:42 · answer #6 · answered by curious dad 3 · 0⤊ 0⤋
IS THE SAME AS A REGULAR REPO
2006-11-30 23:05:20 · answer #7 · answered by VIANNEY 3 · 0⤊ 0⤋